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Sunday, 21 August 2016

The Olympian Debt Write-Off - #Rio2016

(This Draft Of K.Siva's "Geopolitic Strategy" Report Is Dedicated to Prescient Work of David Scott, Indousez WI Carr Economic Strategist in 1997 - Year of Hong Kong Handover to China. Mr Scott elucidated the phenomenon of China exporting global deflation.)

Economies of the
world in slow transition is the likely cause of the stagnation in
economic activity, as reflected by traditional measures since the
financial crash of 2007-08.

The effectiveness of the continuance of
current #politiciansRcriminals monetary-stimulus policies have been considerably questioned for the sustained great inequality of wealth between people, the state and its "hidden hand".
Is current monetary economics merely blowing small capital-markets related trading bubbles and consequent corrections - at the
phenomenal cost to taxpayers via a monumental public debt-bomb?

Perhaps just round the corner with Italy or 'PIIGs' debt default being catalyst for contagion of national debt defaults. Remember, sub-prime mortgage default was trigger for wave of write-downs of housing market securities valuations. FPM's more modest view is the prospect of debt devaluation via concerted and manipulated inflation index increases.

Some have argued that Government
debt-financed stimulus spending since last orchestrated financial crash from 2007-08 caused a bubble in commodities and propped-up
the unrealistic real estate / property asset valuations, more than actually protect jobs and other reputed public-interest effects conveyed by by complicit peculators in corporate-media. Free-market companies and economies are no longer able to grow evolve and founder on their own idiosyncatic risk i.e. as Schumpter's "Creative-Destruction" model of capitalism; instead they take propping-up with public money. These systemic risk companies have come about through globalisation and related deregulation of anti-trust and anti-monopoly policies. These safeguard policies diluted means globalisation and deregulation are dirty words. Despite moron economists and media lies.

The big pharmaceuticals conglomerates corporations DO exactly the same with human lives - that is, help people live longer by being dependent on their medicines. Laissez-faire capitalism or branded widely as "Neoliberalism" policies since 1980's in all reality died a death in 2007-08. Yet the sovereign public debt in the major economies that have ballooned since that US-led housing and financial crisis is the result of policy failure to allow capital asset destruction. Financial and housing assets should have legitimately crashed, not just temporarily out of panic and ensuing fundamental bubble re-valuation, but without the State intervention with taxpayer money to uphold excessive notional valuation. The 1% of society's asset or wealth owners and the larger middle-class beneath them should have had their bubble-inflated assets wiped out - but for the benevolence of the "ragged-trousered philanthropists", the public!

For example, shareholders in Citigroup Inc suffered at the height of the financial crisis when the global retail and corporate banking 'big bank' reflected distressed and insolvent fundamentals with share price trading as low as between USD 1 and USD 5 (before stock split). However, the American taxpayer has been burdened, not just the present generation but future generations too, with Government policy supporting the 1% asset owners with multi-billion Dollar public money infusions and backing. US Treasury department's stated reason for the support was that Citigroup was a "systemically significant" bank and industry. The scale of the taxpayer support for a publicly held / listed company is shown from this excerpt:

...Treasury in November 2008 gave Citigroup a $20 billion emergency
infusion, on top of $25 billion received the prior month, from the $700
billion TARP fund. The government also backed about $300 billion of
Citigroup assets, helping to prop up the New York-based bank as its
share price plunged below $5 and some depositors withdrew funds. (Source Bloomberg, January 13, 2011 "Citigroup Bailout Based on ‘Fear of the Unknown’")

This one example highlighting Citigroup of why the creative-destruction cycle was not permitted in a supposed free-market deregulated economy is the rub, that should cause repugnant revolt from the public about the 21st century con-trick of "neoliberalism": "Private Profits Public Losses" or "socialising losses". The systemic thieving from the public purse is not a new one; Governments of the day or #politiciansRcriminals have enforced prudent austere policies, such as public services cuts, on the greater mass of the public in the name of reigning-in national debt levels; while at the same time systemically allowing the capitalist-wealth class to accumulate private profits in staggering amounts. Evident by the wealth inequality in societies.

To complete FPM's geopolitic vision using the Citigroup example, is the price chart. This shows a story of euphoric excess and deflating stagnation.

In a progressive outlook Citigroup is not a zombie economy constituent but a tell-tale of not allowing creative-destruction to run its course. As demonstrated the "big bank" model in all likelihood has lost its faithful followers and investor adherents; and subsequently exposed the folly and sheer criminality of Government policy failures of flooding these financial bastions with public capital / debt. The new alternative media exposed multi-trillion financial criminality - fraud is too lesser word - has been described as the corrupt crony capitalism of neoliberalism, which engulfs the major profession of politics, judiciary, mains stream media, public relations and of course the banking cartel, all and more pulling the "hidden-hand" strings.

Others suggest public
funds used after reckless and scandalous corporate recessions, in the name of economic stability policies have artificially kept
interest rates low, and prevented mass scale corporate insolvencies
and debt default.Of the numerous "jackanory" stories, really truly it theft by robber barons. As one property builder once pronounced memorably for this author at a builders' merchant store counter, while paying for his purchase: "You Ought To Wear Balaclava, That's Daylight Robbery!"

The systemic stealth transfer of wealth from public sector to private
sector has been happening since Second World War on a "Lion-Zion" scale.
Currently Dissembling As "Middle-East Regime Change" and "Privatization Of
Government and Functions".(Source: FPM and Naomi Klein)

In Great Britain
yet another round of so-called “Quantitative Easing” was instigated
by its Canadian-origin central bank governor Mark Carney. This monetary
re-assurance was allegedly to support the expected slump following
Britain's public national election to exit from the European Union globalisation project on June 23rd,
2016. In FPM geopolitical vision, this is simply the greatest transfer of public wealth to private concerns.

No Smoke Without Fire: Of Reputation (#NSWF:Reputation) know who these private concerns are by historical reputation. To name two direct at hand, @richardbranson of Virgin Group (and FPM's financial honing of reputation @stevencohen of #SAC Capital et al.)

FPM believes the
economic-policy course needs to be re-directed towards real fiscal or
Keynesian-driven expansion, and beyond only capital market support.
The real economy or at least the public sector spending has been
squeezed ie in recession and austerity; while financial markets and
real estate and other selected sectors of the economy (military
spending) have been taxpayer supported and still surviving. Once the directed will is there the way to a
“sustainable new paradigm of economics” is possible.

The drivers for
the new paradigm of sustainable economics; certainly a shift away
from the current #neoliberal agenda are numerous:

The
illustrious manager of Pimco’s bonds funds, Mr William Gross,
stated that on a long-term basis,
governments are likely to use financial repression,
where the rate of inflation is higher than bond yields, to erode the
value of sovereign debt over time. The late Barton Biggs, Morgan stanley strategist also
stated in Mid-2011 that debt devaluation is less painful than debt
destruction as a long-term course.(Source FPM; Bloomberg - 2011)

g) An Olympian
ideal of greatness which can only be locally inspired while thinking global. Brazil Rio 2016 Olympics about national pride for us in London #claphamCommonm #ProudBrit
via #Brexit. 'Brits' were and are worldly without subscribing to clubs
of nonsense to with pretext to unite nations (Once upon a time British Knights supported Teutonic German comrades to "crusade" Christianity! How did that turn out?). A little Britain just finished 2nd in the Olympic medal table.